OnSourcing.COM

OnSourcing Defined:

Onsourcing, sometimes spelled using CamelCase as OnSourcing, is a subcontracting business process that takes a specific job function of one company and places it with another, unaffiliated company, located in a relatively close geographical area.  The close proximity of each company allows ongoing, "in person" interaction, rather than occasional business trips or long distance communication.

The OnSourcing concept fits neatly in between Offshoring and Inshoring as well as Outsourcing and Insourcing.  OnSourcing is a more precise term than Offshoring or Outsourcing because the definition of OnSourcing requires the close proximity of the businesses engaged in the subcontracting business process.

Comparisons:

Whereas Offshoring typically moves jobs from a domestic market to an overseas market, OnSourcing usually keeps jobs within the borders of the country or within a relatively close region.

OnSourcing is not similar to Inshoring.  Inshoring includes the importation of non-domestic workers to a domestic market, most legally, but some illegally. OnShoring specifically precludes this.

As mentioned above, OnSourcing typically does not cross country or even State boundaries, but is not precluded from doing so.  For example, areas such as Europe, where the size and close proximity of major population centers can make state boundaries moot. Another example, in the United States, where there are large cities on the border of each of their respective states.  In many cases, OnSourcing takes place in the same city.

OnSourcing is most similar to Outsourcing, in that job functions are subcontracted to an third party. But, as mentioned above, it differs in that with OnSourcing, the two comanies are in close proximity to each other.  To differentiate, an example of OnSourcing would be between two companies located in New York City, US.  An an example that would exceed the definition of OnSourcing, and therefore be termed Outsourcing, would be a subcontracting relationship between a company in New York, US and a company in Atlanta, US.

NearShorings is also similar, in that the company subcontracted to is relatively close by.

It should also be mentioned that OnSourcing is not a method of job protectionism within a country or job market.  It is simply a description of the typical cirumstances.